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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments, including those entered into for trading and asset-and-liability management activities as of the dates indicated:
(In millions)September 30, 2021December 31, 2020
Derivatives not designated as hedging instruments:
Interest rate contracts:
Futures$3,572 $2,842 
Foreign exchange contracts:
Forward, swap and spot2,372,570 2,640,989 
Options purchased724 946 
Options written221 661 
Futures2,077 1,980 
Other:
Stable value contracts(1)
32,704 32,359 
Deferred value awards(2)
360 332 
Derivatives designated as hedging instruments:
Interest rate contracts:
Swap agreements13,714 7,449 
Foreign exchange contracts:
Forward and swap6,877 5,221 
(1) The notional value of the stable value contracts represents our maximum exposure. However, exposure to various stable value contracts is generally contractually limited to substantially lower amounts than the notional values.
(2) Represents grants of deferred value awards to employees; refer to pages 158 to 159 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2020 Form 10-K.
Schedule of Derivative Assets at Fair Value
The following table presents the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is provided in Note 8.
Derivative Assets(1)
Derivative Liabilities(2)
(In millions)September 30, 2021December 31, 2020September 30, 2021December 31, 2020
Derivatives not designated as hedging instruments:
Foreign exchange contracts$16,345 $25,939 $15,735 $25,811 
Other derivative contracts— — 176 157 
Total$16,345 $25,939 $15,911 $25,968 
Derivatives designated as hedging instruments:
Foreign exchange contracts$108 $4 $— $116 
Interest rate contracts4 1 27 42 
Total$112 $5 $27 $158 
(1) Derivative assets are included within other assets in our consolidated statement of condition.
(2) Derivative liabilities are included within other liabilities in our consolidated statement of condition.
Schedule of Derivative Liabilities at Fair Value
The following table presents the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is provided in Note 8.
Derivative Assets(1)
Derivative Liabilities(2)
(In millions)September 30, 2021December 31, 2020September 30, 2021December 31, 2020
Derivatives not designated as hedging instruments:
Foreign exchange contracts$16,345 $25,939 $15,735 $25,811 
Other derivative contracts— — 176 157 
Total$16,345 $25,939 $15,911 $25,968 
Derivatives designated as hedging instruments:
Foreign exchange contracts$108 $4 $— $116 
Interest rate contracts4 1 27 42 
Total$112 $5 $27 $158 
(1) Derivative assets are included within other assets in our consolidated statement of condition.
(2) Derivative liabilities are included within other liabilities in our consolidated statement of condition.
Schedule of Derivatives
The following table shows the carrying amount and associated cumulative basis adjustments related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships:
September 30, 2021
Cumulative Fair Value Hedging Adjustment Increasing (Decreasing) the carrying amount
(In millions)Carrying Amount of Hedged Assets/LiabilitiesActive
De-designated(1)
Long-term debt$9,024 $(14)$554 
Available-for-sale securities2,420 4 28 
December 31, 2020
Cumulative Fair Value Hedging Adjustment Increasing (Decreasing) the carrying amount
(In millions)Carrying Amount of Hedged Assets/LiabilitiesActive
De-designated(1)
Long-term debt$10,519 $3 $688 
Available-for-sale securities2,330 2 43 
(1) Represents hedged items no longer designated in qualifying fair value hedging relationships for which an associated basis adjustment exists at the balance sheet date.
Impact of Derivative Financial Instruments On Statement of Income
The following table presents the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated:
Location of Gain (Loss) on
Derivative in Consolidated
Statement of Income		Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2021202020212020
Derivatives not designated as hedging instruments:
Foreign exchange contractsForeign exchange trading services revenue$186 $164 $617 $712 
Foreign exchange contractsInterest expense16 20 53 39 
Interest rate contractsForeign exchange trading services revenue— — 1 3 
Other derivative contractsCompensation and employee benefits(35)(39)(158)(151)
Total$167 $145 $513 $603 
The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated:
Three Months Ended September 30,Three Months Ended September 30,
2021202020212020
(In millions)Location of Gain (Loss) on Derivative in Consolidated Statement of IncomeAmount of Gain
(Loss) on Derivative
Recognized in
Consolidated
Statement of Income		Hedged Item in Fair Value Hedging RelationshipLocation of Gain (Loss) on Hedged Item in Consolidated Statement of IncomeAmount of Gain
(Loss) on Hedged
Item Recognized in
Consolidated
Statement of Income
Derivatives designated as fair value hedges:
Interest rate contractsNet interest income$15 $5 
Available-for-sale securities(1)
Net interest income
$(17)$(6)
Interest rate contractsNet interest income(7)(19)Long-term debtNet interest income8 17 
Total$8 $(14)$(9)$11 
Nine Months Ended September 30,Nine Months Ended September 30,
2021202020212020
(In millions)Location of Gain (Loss) on Derivative in Consolidated Statement of IncomeAmount of Gain
(Loss) on Derivative
Recognized in
Consolidated
Statement of Income		Hedged Item in Fair Value Hedging RelationshipLocation of Gain (Loss) on Hedged Item in Consolidated Statement of IncomeAmount of Gain
(Loss) on Hedged
Item Recognized in
Consolidated
Statement of Income
Derivatives designated as fair value hedges:
Interest rate contractsNet interest income$9 $(3)
Available-for-sale securities(2)
Net interest income$(12)$— 
Interest rate contractsNet interest income(26)564 Long-term debtNet interest income26 (557)
Total$(17)$561 $14 $(557)
(1) In the three months ended September 30, 2021, approximately $13 million of net unrealized gains on AFS investment securities designated in fair value hedges was recognized in OCI compared to $4 million of net unrealized gains in the same period in 2020.
(2) In the nine months ended September 30, 2021, approximately $9 million of net unrealized gains on AFS investment securities designated in fair value hedges was recognized in OCI compared to no net unrealized gains or losses in the same period in 2020.
Three Months Ended September 30,Three Months Ended September 30,
20212020Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income20212020
(In millions)Amount of Gain or (Loss) Recognized in Other Comprehensive Income on DerivativeAmount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Derivatives designated as cash flow hedges:
Interest rate contracts(1)
$(3)$— Net interest income$22 $18 
Foreign exchange contracts12 (30)Net interest income2 6 
Total derivatives designated as cash flow hedges$9 $(30)$24 $24 
Derivatives designated as net investment hedges:
Foreign exchange contracts$111 $(122)Gains (Losses) related to investment securities, net$— $— 
Total derivatives designated as net investment hedges111 (122)— — 
Total$120 $(152)$24 $24 
Nine Months Ended September 30,Nine Months Ended September 30,
2021202020212020
(In millions)Amount of Gain or (Loss) Recognized in Other Comprehensive Income on DerivativeLocation of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into IncomeAmount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Derivatives designated as cash flow hedges:
Interest rate contracts$(9)179Net interest income$62 $32 
Foreign exchange contracts55 $(11)Net interest income8 20 
Total derivatives designated as cash flow hedges$46 $168 $70 $52 
Derivatives designated as net investment hedges:
Foreign exchange contracts$222 $(100)Gains (losses) related to investment securities, net$— $— 
Total derivatives designated as net investment hedges222 (100)— — 
Total$268 $68 $70 $52 
(1) As of September 30, 2021, the maximum maturity date of the underlying hedged items is approximately 5.0 years.